Ann: September 2018 Quarterly Activities and Cash Flow Report, page-18

Spec

I think you are across the figures better than most, including me and what you wrote is fine.

But for me its always been concerns with respect to the high strip ratio for a lowish grade deposit in the first two years of operation when they in theory are supposed to be making a lot of surplus cash to repay the loan. You may recall that after finally having a look at the DFS I sold out in the mid 40s cents. Obviously things have since gotten off the rail with issues of extra blasting costs (hopefully this will go away in subsequent quarters), mining delays, grade reconciliation issues, grade being lower than forecast, come to mind.

I also wonder about how prospective the tenements are for finding gold within trucking distance of the mill, given that presumably others have looked there in the past.

We will know more as things unfold.

I hope the share price does recover so that shareholders can at least be made good on their investment.

GCY is unlikely to turn into a cashcow for me the way SBM, and RSG were by mid/late 2016. I just thought there is a small trade here.

One thing is certain, if the money runs out this time then they will not get any institutional support to raise more funds and they will be seeking funds at 2-5 cents from shareholders. GCY has about 6-9 months to turn things around, assuming what they have said in the quarterly report is basically correct.

loki